Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/a123/)
today announced that a class action has been commenced in the United
States District Court for the Southern District of New York on behalf of
purchasers of A123 Systems, Inc. ("A123" ) (NASDAQ:AONE) securities
during the period between February 28, 2011 and October 16, 2012 (the
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of
Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected].
If you are a member of this class, you can view a copy of the complaint
as filed or join this class action online at http://www.rgrdlaw.com/cases/a123/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges certain officers and directors of the former A123,
which filed for protection under the federal bankruptcy statutes in
October 2012, with violations of the Securities Exchange Act of 1934.
A123 designed, developed, manufactured, and sold advanced rechargeable
lithium-ion batteries and battery systems. Its largest customer was
Fisker Automotive, Inc. ("Fisker"), which, like A123, received hundreds
of millions of dollars in U.S. Department of Energy ("DOE") funding to
design and mass produce plug-in electric vehicles.
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company's
financial performance and future prospects, including failing to
disclose that: (i) by February 2011, Fisker was in default on production
milestones in its DOE funding agreement, threatening Fisker's DOE
funding and ability to pay A123; (ii) by June 2011, the DOE had cut off
disbursements to Fisker; (iii) by the fall of 2011, Fisker had run out
of cash and was refusing to accepting batteries from A123; (iv) A123's
$20.5 million investment in Fisker's preferred stock was materially
impaired; (v) the carrying value of A123's long-term grant receivable
was overstated; (vi) the carrying value of accounts receivable due A123
from Fisker was overstated; and (vii) as a result, A123 was not on track
to achieve the financial results the market had been led to expect
during the Class Period.
As the market learned between November 2011 and October 16, 2012 that
Fisker was rejecting prior orders for batteries, that A123 was
downgrading earnings guidance and taking an impairment charge on its
Fisker investment, that the Company's forecast of incurring significant
net losses and negative operating cash flows had raised substantial
doubt regarding the Company's ability to continue as a going concern,
and finally that A123 had filed for bankruptcy, the price of its stock
declined from a Class Period high of $9.48 per share on February 28,
2011 to pennies per share.
Plaintiff seeks to recover damages on behalf of all purchasers of A123
securities during the Class Period (the "Class"). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting
investor class actions and extensive experience in actions involving
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in nine offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries and has been ranked number one in the number of shareholder
class action recoveries in MSCI's Top SCAS 50 every year since
2003. Please visit http://www.rgrdlaw.com
for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900